The Role and Importance of Stakeholders (AQA A Level Business): Exam Questions

Exam code: 7132

51 mins5 questions
1
4 marks

Case Study

Simply Bake plc

Palm oil is a cheap oil ingredient used in the manufacture of many everyday items. Production of palm oil often involves farmers clearing rainforests. The destruction of this habitat has led to the loss of many animal species, including half of the world’s orangutans.

Powerful campaign groups with many members, such as Greenpeace and the World Wildlife Foundation, have highlighted the issue. As a result, consumers are increasingly aware of the environmental impact of using palm oil.

Simply Bake plc is a supplier of cakes to supermarkets, who then retail them as their ‘own brand’ products. For many years, palm oil has been an important ingredient in Simply Bake plc’s products, allowing it to meet the demand for cheap food.

In 2018, a small campaign group, Action against Palm Oil (APO), criticised Simply Bake plc. APO had carried out a survey using a sample of 100 of its 400 members to represent the views of UK consumers. The survey found that 67% of respondents wanted the government to ban the use of palm oil.

High-profile media campaigns have increasingly drawn attention to the issue of palm oil production. By 2019, supermarkets had noticed increasing numbers of enquiries from their customers about palm oil and environmental damage.

Finding alternative ingredients is difficult and expensive, but in 2020 Simply Bake plc announced that it will have changed all its recipes to remove palm oil by 2025.

Explain how stakeholder mapping would help Simply Bake plc decide how it responds to criticism from APO.

2
1 mark

The managers of a business propose to retain all of its profit to finance automation of its production. This is most likely to cause conflict with:

  • employees and lenders.

  • employees and shareholders.

  • lenders and suppliers.

  • shareholders and suppliers.

3
20 marks

Read the case study in the Insert (opens in a new tab).

To what extent would the reactions of SSN Ltd’s stakeholders to the possible takeover be likely to lead to conflict between those stakeholders?

4
25 marks

Evaluate the extent to which the use of stakeholder mapping can help the managers of a public limited company to manage change more effectively.

5
1 mark

Figure 1 below shows a stakeholder map.

Figure 1: Stakeholder map

Four-quadrant chart titled "Level of Power and Interest": Shareholders (high power, low interest), Employees (high power, high interest), Suppliers, Customers.

For this particular business, which stakeholder group is most likely to influence this business’ management decision-making?

  • Suppliers

  • Customers

  • Shareholders

  • Employees